Texas Beef Cattle Co. v. Green
| Citation | 883 S.W.2d 415 |
| Decision Date | 01 September 1994 |
| Docket Number | No. 09-93-013,09-93-013 |
| Court | Court of Appeals of Texas |
| Parties | TEXAS BEEF CATTLE COMPANY, et al, Appellants, v. Jeff GREEN, Individually and d/b/a J & F Cattle Company, Appellee. CV. |
David J. Fisher, Orgain, Bell & Tucker, Beaumont, for appellant.
James G. Gumbert, Mike Johnston, Bill Daniel, Sullins, Johnston, Rohrback, Magers & Herbert, Houston, for appellee.
Before WALKER, C.J., and BROOKSHIRE and BURGESS, JJ.
Appellee, Jeff Green (Green), brought suit against appellants, Texas Beef Cattle Company (Texas Beef) and W.H. (Bill) O'Brien (O'Brien), alleging an actionable tortious interference with contract and also pleading a cause of action for malicious prosecution. Texas Beef is a general partnership made up of a number of general partners. O'Brien is described as the managing partner of the general partnership. All the members or partners of Texas Beef are general partners.
In a juried proceeding, the jury found in favor of Green. In answers to Question 1, the fact finders found that Texas Beef and O'Brien tortiously interfered with a contract between Green and Cargill Agricultural Credit Corporation (Cargill) and that the tortious interference was a proximate cause of damages to Green. The jury in separate answers found that Texas Beef had tortiously interfered causing damages to Green and, in addition, that O'Brien had tortiously interfered causing damages to Green. Question 1, inquiring about tortious interference was, we hold, correctly submitted with proper instructions.
In response to a separate jury question (Question 2), the jury found that Texas Beef and O'Brien were privileged to interfere with the contractual relationship between Green and Cargill. However, that interference was done with malice by O'Brien. The jury found no malice against Texas Beef. The failing to find malice as against Texas Beef is not controlling as to O'Brien personally who was the managing partner. O'Brien was not absolved. Malice was defined to include ill will, spite, evil motives, and purposely injuring another, being Green.
The jury also found that Texas Beef and O'Brien maliciously prosecuted the Hartley County suit against Green by pursuing, originating, and instigating litigation in Hartley County and that this malicious prosecution proximately caused damages to Green. Question 4 inquired about malicious prosecution. We conclude Question 4 was correctly submitted with correct instructions. The jury found for Green on the termination element of the malicious prosecution case.
The Liberty County jury, in the case sub judice, on the damage issues did not favor Green as to every element of damage submitted. The jury below found no damages for mental anguish but the jury found that Green had been damaged in his business and personal reputation and that Green had been damaged by having to pay reasonable and necessary attorneys' fees and costs in the past in connection with the Hartley County litigation as well as reasonable and necessary attorneys' fees and costs in the future in connection with the Hartley County litigation. The jury awarded a sizable sum as exemplary damages against O'Brien. No exemplary damages were affixed against Texas Beef by the jury.
To understand the posture of this appeal, it is noted that these parties have been previously before us. A prior, full-dress first Liberty County case was tried. The first jury returned a detailed verdict of over 30 issues. The pleadings of these same parties in the first case and the issues determined therein by the first jury control, to a significant degree, the points of error in this subsequent appeal. Green prevailed in the first Liberty County case. We affirmed in an unpublished opinion. The Supreme Court denied the application for a writ of error filed by the appellants in the first case. The first case determined the issues, inter alia, of titles to cattle and issues deciding the payment of debts and other liabilities.
The defendants/appellants now attack the judgment through a number of points of error. In basic terms the appellants argue that no judgment can be based upon the malicious prosecution theory because Green failed to prove the required elements of a malicious prosecution cause of action. In separate points of error, the appellants state that the trial judge improperly disregarded the jury finding on privilege which was allegedly a complete affirmative defense for the defendants in the cause of action based on tortious interference of contract. Appellee counters that the finding of malice as defined destroyed the defense of privilege.
The oral submissions were very helpful and the briefs clearly demonstrate a high degree of professionalism.
The appellants bring 21 points of error. Many of them are grouped. This opinion will attempt to write upon the same as grouped.
The main thrust of the appellants' first group of challenges is that since the jury found that Texas Beef and O'Brien were privileged to interfere with a contractual relationship between Green and Cargill, then no recovery can be based on the theory of tortious interference with a contract. Appellee rebuts appellants' position by stating that since O'Brien acted with malice as defined in Question 3 that the privilege was destroyed. The privilege was a qualified one.
Following the trial on the merits to the jury, the able presiding judge disregarded the jury's finding that Texas Beef and its managing partner O'Brien were privileged to interfere with the contractual relationship between Green and Cargill because there was no legally sufficient evidence to support that finding and because under the entire verdict that finding of privilege (being a qualified one) became ineffectual. The finding of malice as submitted to the jury destroyed any privilege.
The trial judge in the case at bar entered judgment against Texas Beef in favor of Green for the actual damages, being $175,000 plus pre-judgment interest, post-judgment interest, and court cost. The exemplary damages award of $500,000 was set against the managing partner, O'Brien.
Appellee argues that the trial court properly disregarded the jury's answer to Question 2 dealing with privilege because such privilege only protects good faith acts and valid assertions of legal rights. We agree under this unique record.
Of paramount importance are the background and the previous litigation between and among the parties. The first Liberty County trial was conducted in April and May of 1989. This previous litigation proceeded to final judgment. Appellee argues several following theories and contentions. Appellee maintains appellants were barred by the doctrines of res judicata as well as collateral estoppel from bringing their Hartley County litigation. Also, the appellants violated the compulsory counterclaim rule.
At the core of these multiple lawsuits and appeals lies the question, ownership, and status of 247 head of cattle as well as much larger numbers of cattle of different genders. The 247 head were steers. The other groups of cattle included heifers and cows. Texas Beef at the time of the various litigations was and apparently still is a Texas general partnership in the continuing business of buying, feeding, and selling cattle. O'Brien was, at all relevant times, the managing partner of Texas Beef. Green is an individual engaged in the business of buying cattle for others and of collecting the cattle and reselling the same. This appeal involves the third lawsuit between Green and Texas Beef and O'Brien.
The record reflects that Green had gathered actually about 253 head of cattle that were repetitiously described in the statement of facts as being 247 head of steers. Green was a bonded order buyer of cattle. Green had met one Doug Florence who was in the cattle business in the Panhandle area of Texas. Doug operated the Los Ninos Ranch which was near Dalhart, Texas, northwest of Amarillo. Doug Florence also leased a large ranch known as the Beck Ranch. The Beck Ranch was east of Dalhart.
The record reflects that O'Brien had come to Hardin, Texas, to look over the facilities of Green near Daisetta and Hull. Green had several cow pens at or near his house in Hardin. In the pens Green had backbranded cattle and he stocked cattle. Green would buy cattle and bring them to his pens and then ship them out to buyers. Green stocked cattle rather than actually pasture the cattle. Green dealt principally in cross breed cattle because the record shows that when doing business in the Panhandle that a bonded order buyer could not sell cattle with over 1/8 or 1/4 Brahman blood in the cattle. The rest of the blood line had to be of an English breed. This requirement was necessitated by the cold winters and other factors in the Panhandle. Doug Florence and O'Brien had a going partnership or a joint venture partnership in cattle.
Green had already fully paid for the 247 steers. Green's cost was about $98,000 or $99,000. The 247 head had been gathered by Green from El Campo, Warton, Sealy, and other towns in Texas. Some of the 247 came out of Louisiana. Green paid for the cattle with borrowed money. He had a line of credit with First State Bank in Hull. Doug Florence told Green to ship the 247 steers to the Beck Ranch.
After the 247 arrived at the Beck Ranch no one paid Green for them. The 247 were kept separated from all other cattle on the Beck Ranch. Green had previously delivered many head of various types of cattle before the 247 arrived. The earlier cattle included heifers, cows and different steers. Green explained that he needed his money quickly for the 247...
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Texas Beef Cattle Co. v. Green
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